Ucal Fuel Systems Ltd has informed BSE that Carburettors Ltd and Mikuni Corporation, Japan are the promoters of UCAL Fuel Systems Ltd. A Joint Venture Agreement (JV) was entered into between them in 1988. In terms of the Joint Venture Agreement, Mikuni Corporation and Carburetters Ltd each invested 26% in the equity of UCAL Fuel Systems Ltd.

Mikuni Corporation have decided to disinvest its entire shareholding of 3,612,960 equity shares constituting 26% in the equity of UCAL Fuel Systems Ltd. Carburettors Ltd will acquire these shares. Simultaneously on the disinvestment by Mikuni Corporation, the JV agreement between Mikuni Corporation and Carburettors Ltd will get terminated. Despite the termination of the JV Agreement the current products of the JV will continue to be manufactured by UCAL Fuel Systems Ltd and supplied to all customers. UCAL Fuel Systems Ltd and Mikuni Corporation will continue to co-operate in limited areas.

The Board of UFSL at its meeting held on April 16, 2008 took note of the proposed termination of the JV agreement. On termination of the JV agreement, existing Technical Assistance Agreements with Mikuni Corporation will get appropriately amended. The Board also authorized its Managing Director Mr. K Jayakar to sign the relevant documents in this regard on April 18, 2008 or any date thereafter in India or abroad.